How did England and the Dutch Republic successfully compete with France and Spain for control of trade and overseas territories?

During the 16th Century Spain and France dominated control of trade and overseas territories. Both Spain and France rose to dominance and then declined for very different reasons. Spain ran into problems that were directly attributable to her New World empire while France, on the other hand, was in constant competition with England. The decline of Spain and France led to the successful rise of the Dutch Republic and England.

For Spain, the 16th century was known as the “Golden Century” because their supreme merchant and military fleets, as well as the abundant wealth that poured in from their colonies in the New World gaving them unrivaled domination over the sea. However, 1588 marked the beginning of the end with the destruction of the Spanish Armada by the English and the end of their naval domination. The huge amounts of bullion coming from the colonies resulted in inflation and because they wasted the revenue on luxuries, the currency became debased and the economy stagnant. Lack of a strong middle class, intellectual isolation, agricultural crisis, and psychological malaise also contributed to downfall. Next, the Dutch Republic began to cut into Spain’s trade with its colonies. This caused trade between Spain and it’s colonies to decrease by 60% from 1610-1650. Castilian cloth could not compete in colonial and international markets. Finally, there were many expensive wars that Spain lacked the “manpower and expenses” to enter into, such as the Thirty Years War, the revolts by Portugal and Catalonia, and the defeat by the French at Rocroi in 1643. The defeat by the French was ended by the Treaty of the Pyrenees which marked the decline of Spain to a second rate power.

Much like the 16th century for Spain, the 17th century in the Dutch Republic was known as the “Golden Age of the Netherlands”. The Dutch Republic gained independence from Spain as part of the Peace of Westphalia in 1648. Each province had a stadholder who acted like a president, and represented the province. A constitutional state, the Dutch Republic, the political success of the Dutch Republic rested on the commercial success of the Netherlands. The trading system in the Dutch Republic was based on three things: frugality, religious toleration, and thrift. Dutch Calvinists had earned reputation as hard working and frugal. In addition, the religious toleration shown by the Dutch was successful because it brought foreign and capital investment. Political stability, sound economic policies, and religious toleration attracted foreigners. The Dutch even were one of the few countries to welcome the Jews who brought their money and their financial expertise. The creation of the Bank of Amsterdam and other attributes such as forestry, grain production, fishing, and merchant marine all helped the Dutch become a leading trading nation. Several events also led to the rise of the Dutch. In 1602, the Dutch East India Company cut into the trade of Portugal with East Asia and seized the Cape of Good Hope, Creyon, and Malacca. In 1621, the Dutch West India Company began to only trade with Latin America and Africa. These factors lead to the Dutch having the highest standards of living.

In 1651, Cromwell enforced the Navigation Acts. The Navigation Acts stated that goods could be imported into territories of the English Commonwealth only by English ships, or by ships of the country originally producing the goods being carried. This was intended to cripple the freight trade, which Dutch commerce depended on. In the Anglo-Dutch Wars the Dutch lost to the English. In the first Anglo-Dutch war (1652-4) was a victory for the English. In 1664 the Dutch lost their North American colony of New Netherlands to the English. The Second Anglo-Dutch war (1665-7), resulted in a victory for the Dutch, and may have been the height of Dutch seapower. By the secret Treaty of Dover, Charles II of England was bound to help Louis XIV against the Dutch. After the Glorious Revolution and the ascension of William and Mary, London became the commercial center of Europe. In the third Anglo-Dutch war (1672-4) the Dutch held back the French and English navies. Several factors, such as the war with France, expenses of labor and cost of the War of Spanish Succession, and the peace of 1713 lead to the decline of the Dutch economy.

Although the English were ahead in the trading industry, their fighting with France for maritime power was a major rivalry. This was because France had the larger population and was very rich in natural resources. The first war was the War of Spanish Succession. In this war, the British defeated the French and gained Newfoundland, Nova Scotia, and the Hudson Bay. The Treaty of Utrecht, which ended the War of Spanish Succession also allowed the British to send one ship annually to the Spanish Colonies. Next, the French and the English fought in the War of Austrian Succession. This became a world war that included Anglo-French conflicts in India and North America but it didn’t result in changes to territorial situations in North America. Next was the Seven Years War. The British used their sea powers to defeat the French and cut off their commerce around the world. In 1759, the British invaded Quebec and won. In 1763, the Treaty of Paris took all of Frances’ North American and most of it’s Indian possessions away and gave them to Britain. All of these factors led to Britain’s dominant trading and colonial empire.

Conclusion




Thesis: During the 16th Century Spain and France dominated control of trade and overseas territories. Both Spain and France rose to dominance and then declined for very different reasons. Spain ran into problems that were directly attributable to her New World empire while France, on the other hand, was in constant competition with England. The decline of Spain and France led to the successful rise of the Dutch Republic and England.
I. Spain:
1. The 16th Century was known as “Golden Century” for Spain b/c of: merchant
military fleets & wealth in colonies
2. Spain’s domination of trade ended about 1590 due to:
· Destruction of Spanish Armada in 1588
· “lack of a strong middle class, intellectual isolation, agricultural crisis, and psychological malaise”
· Dutch beginning to cut into Spain’s trade with its colonies, which caused trade b/w Spain and its colonies to decrease by 60% from 1610-1650
· flood of gold and silver lead to an inflation, and Castilian cloth could not compete in colonial and international markets
· Expensive wars that Spain lacked the “manpower and expenses” to enter into: Thirty Years War, revolts by Portugal, and Catalonia, and defeat by French at Rocroi in 1643 (ended by Treaty of Pyreenes, which marked decline of Spain to second rate power
2. Dutch Republic:
1. 17th Century was known as “Golden Age of the Netherlands”
2. Independence from Spain in 1648 through Peace of Westphalia, Stadholders in each region. Political success on commercial sucess
3. Basis of Dutch trading- frugality, religious toleration, thrift, Dutch Calvinist
4. Religious toleration shown by Dutch was successful, b/c it brought foreign and capital investment ex. The Jews
5. Bank of Amsterdam
6. Dutch were known for forestry, grain production, fishing, and merchant marine
(all of these lead to Dutch becoming dominant in trade industry)
7. 1602- Dutch East India Company: cuts into the trade of Portugal with East Asia, seizes the Cape of Good Hope, Creyon, and Malacca
8. 1621- Dutch West India Company: only trades with Latin America and Africa (these factors lead to Dutch having highest living standards)
9. war with France, expenses of labor and cost of the War of Spanish Succession, and peace of 1713 (end of war) leads Dutch decline

III. Dutch and English
1) In 1651, Cromwell enforced the Navigation Acts.
a) stated that goods could be imported into territories of the English Commonwealth only by English ships, or by ships of the country
originally producing the goods being carried.
b)This was intended to cripple the freight trade, which Dutch commerce depended on.
2) In the Anglo-Dutch Wars the Dutch lost to the English.
a)In the first Anglo-Dutch war (1652-4)was a victory for the English Lost New Netherlands to the English.
b)The Second Anglo-Dutch war (1665-7), resulted in a victory for the Dutch, and may have been the height of Dutch seapower.
c) 9) In the third Anglo-Dutch war (1672-4) the Dutch held back the French and English navies
3) By the secret Treaty of Dover, Charles II of England was bound to help Louis XIV against the Dutch.
4) After the Glorious Revolution and the ascension of William and Mary, London became the commercial center of Europe.
5)Several factors, such as the war with France, expenses of labor and cost of the War of Spanish Succession, and the peace of 1713 lead to the decline of the Dutch economy.

IV. English and French:
1. Even though English were ahead in trade industry, fighting w/ French for maritime power was a major rivalry
2. France had larger population and was rich in natural resources
3. English and French fought several wars that determined who had maritime power:
· War of Spanish Succession: British defeated French and gained Newfoundland, Nova Scotia, and Hudson Bay. (Treaty of Utrecht) also allowed the British to send one ship annually to the Spanish colonies
· War of Austrian Succession: Became a world war that included Anglo-French conflicts in India and North America (didn’t result in changes to territorial situations in North America)
· Seven Years War: British used their sea powers to defeat French and cut off French commerce around world
· 1759- Britain invaded Quebec and won. (Treaty of Paris (1763) took all of France’s North American and most of its Indian possessions away and gave them to Britain
4. All of these factors lead to Britain’s dominant trading and colonial empire
Conclusion